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Press Release

RACKABLE SYSTEMS ANNOUNCES NEW SERVER CONFIGURATIONS
BASED ON DUAL-CORE INTEL® XEON® PROCESSORS

-- Power Efficient Server Designs to Feature New 'Dempsey' and 'Woodcrest' Processors --

MILPITAS, Calif., May 23, 2006 – Rackable Systems, Inc. (Nasdaq: RACK), a leading provider of servers and storage products for large-scale data centers, today announced availability of servers based on the new Dual-Core Intel Xeon processor 5000 series (code named 'Dempsey'). Integrated across Rackable Systems' broad, award-winning line of servers, the new 95 watt processor will enable up to twice the performance while reducing power draw over current single-core Intel Xeon processors.

Servers featuring the even lower wattage and higher performing Dual-Core Intel Xeon processor 5100 series (codenamed 'Woodcrest') will be available starting June 26, 2006. The Dual-Core Intel Xeon processor 5100 series delivers up to three times the performance per watt and greater than two times performance over single-core Intel Xeon processors.

"The newest evolution in the Dual-Core Intel Xeon processor roadmap provides improved performance while decreasing the power draw over previous Intel Xeon processors," said Tony Hampel, director of server product marketing at Rackable Systems. "Our customers continue to embrace dual-core technology, and we believe these new processors will provide improved value per watt."
Designed using industry-standard components with an open architecture approach, Rackable Systems' products support the full range of Intel Xeon processors to provide maximum choice and flexibility for customers.

"Intel is working with Rackable Systems to achieve even greater thermal efficiencies across its wide range of Intel Xeon processor-based offerings," said Boyd Davis, general manager, Intel's Server Platforms Group Marketing. "As a known leader in power efficient data center solutions, Rackable Systems provides an ideal platform for our new lower wattage Intel Xeon processors to achieve unparalleled price-performance per watt."

About Rackable Systems
Rackable Systems, Inc. (Nasdaq: RACK) is a provider of servers and storage products for scale out data center deployments. The company's servers are designed to provide benefits in the areas of density, thermal efficiency, serviceability, power distribution and remote management. Founded in 1999 and based in Milpitas, California, Rackable Systems serves Internet, semiconductor design, enterprise software, federal government, entertainment, financial services, oil and gas exploration and biotechnology customers worldwide.

To learn more about Rackable Systems visit www.rackable.com.

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